ERBIL — Iraq is facing a significant $15 billion loss in its energy sector in 2024, as the country struggles to address major oil-related challenges, primarily due to the suspension of oil exports from the Kurdistan region, according to the US Energy Information Administration (EIA). Despite ongoing efforts, Iraq has encountered setbacks in several key energy issues.

One of the most pressing challenges has been the resumption of oil exports from the Kurdistan region to international markets. Negotiations between Iraqi federal government, the Kurdistan Regional Government (KRG), and oil companies have failed to reach an agreement, preventing the return of more than 400,000 barrels per day of Kurdish oil to the global market.

This deadlock has persisted for over 21 months.

While the Iraqi federal government approved a budgetary measure to compensate the KRG for oil production and transportation costs, capped at $16 per barrel for foreign oil companies, this provision has yet to pass through parliament.

Kurdish oil exports were halted in March 2023 following an international arbitration ruling that sided with Baghdad, requiring Turkey to pay $1.5 billion for the unauthorized transport of Kurdish oil through the Ceyhan pipeline from 2014 to 2018.

Attempts to restart the pipeline have failed due to differing demands from the KRG, foreign oil companies, and the federal government. As a result, Iraq has suffered financial losses, which have surpassed $15 billion by October 2024.

Additionally, Iraq has faced difficulties adhering to OPEC+ production cuts. The country has struggled to meet its production quota, consistently exceeding the agreed-upon limit throughout 2024.